Telkom Strikes R6.75 Billion Deal Selling Mast and Tower Business to International Consortium

South African telecommunications giant Telkom has made a momentous move by initiating the sale of its masts and towers business, Swiftnet, for an impressive R6.75 billion. The sale was agreed upon with a consortium headed by Actis, a UK-based investment firm known for its portfolio in digital infrastructure.

Telkom's decision to divest from its non-core assets comes as part of a strategic maneuver aimed at bolstering the company’s financial foundation, reducing existing debt levels, and improving its liquidity status. In entering this sale agreement with Towerco Bidco Proprietary Limited, Telkom is stepping up efforts to streamline operations and concentrate on primary business activities, thereby potentially enhancing shareholder value.

Swiftnet boasts approximately 4,000 nationwide sites that provide co-location space to major operators in the mobile network industry. With this move, Telkom Group CEO Serame Taukobong emphasized the company's directive towards becoming a formidable infrastructure provider integral to South Africa’s digital trajectory.

Taukobong highlighted that, beyond the substantial financial benefit, the transaction is designed to ensure uninterrupted continuity for Telkom’s related businesses. Notable among these is Openserve, Telkom’s wholesale and networks division, as well as its Consumer division. The deal stipulates continued access to Swiftnet's infrastructure under favourable conditions, ensuring that both Telkom and Actis maintain their association in a win-win setup.

David Cooke, the managing partner of Actis, has voiced his anticipation for the long-term value and prospects inherent in Swiftnet. Actis is set to strengthen its digital infrastructure investments through this acquisition while maintaining a beneficial relationship with Telkom, supporting its enduring commitment to provide access services.

Although still contingent upon approvals from shareholders and regulatory bodies, the outlook from Telkom remains positive. The company trusts that this strategic disposition of Swiftnet will engender sustained advantage and reinforce Telkom’s stature in the ever-evolving South African digital framework.